The value of used electric vehicles is falling at nearly 10 times the speed of internal combustion vehicles. While the vehicles remain popular, several factors, including gas prices and Tesla’s enormous influence, are causing the value of second-hand EVs to drop dramatically.
In June, the average price of an EV was 29.5 percent lower than it had been a year earlier. That’s even lower than in May, when prices were 28.9 percent lower than a year before, according to new data. Meanwhile, the average price of a used vehicle, industry-wide, was down just 3.6 percent in June 2023.
Although the prices of used vehicles are falling across the industry, iSeeCars reports that their prices are still above pre-pandemic levels. Worldwide factors have had a greater impact on the market for used EVs.
Read: EV Inventory At American Dealers Surpasses ICE Vehicle Inventory
“In Spring 2022 the war in Ukraine sent the cost of oil skyrocketing. Consumers saw electric vehicles as a safe haven from volatile gas prices,” said Karl Brauer, iSeeCars’ executive analyst. “A year later fuel prices have stabilized, interest rates have risen, and shoppers are cautiously weighing their vehicle purchase options as they seek maximum value from their car-buying dollar.”
Used Vehicles That Lost The Most Value In June 2023
In addition, since Tesla is by far the biggest manufacturer of electric vehicles in America, it has massive influence over both the new and used EV market. Indeed, now that it is cutting prices for new vehicles, the value of used Teslas has fallen, and that’s having an impact on the overall market for second-hand electric vehicles.
The Tesla Model 3, Model X, and Model S were the three of the four used vehicles that lost the most value in America in June. While the SUV lost an average of 21 percent of its value and the Model S lost 19 percent—the equivalent of $18,980 and $15,212, respectively—the Model 3 has lost an impressive 30 percent of its value—or $16,258.
The Teslas aren’t alone, though. The one- to five-year-old used vehicle that lost the third most value in June 2023 was the Nissan Leaf, which is worth now worth 19.2 percent less than it was in June 2022.
Meanwhile, no EVs were on the list of used vehicles that gained the most value in June 2023. That list was led by gas-guzzling vehicles like the Mercedes SL, the Chevy Suburban, the Porsche 911, and the 718 Cayman. However, overall, Brauer predicts that the market for used vehicles has now stabilized, and the falling prices of EVs may be good news for shoppers.
“Used car prices are still well above pre-pandemic levels, but they’ve come off their highs from last year and should be relatively stable over the next 6 to 12 months,” he said. “Shoppers in need of a used car can find deals now, particularly on used Teslas, which have lost substantial value over the past 12 months.”
Used Vehicles that Gained the Most Value in June 2023